23 Jul How Home Insurance Has Changed Since COVID-19
Since the onset of the COVID-19 pandemic early in 2020, life has changed in a number of ways for all of us and across nearly every industry — including insurance. The most common policies affected were travel, life, auto, and disability, but the list doesn’t end there. The ripple effects of COVID-19 have even reached home insurance policies. If you moved your business into your home, started a business out of your home, have had kids attending virtual school, or are in the process of buying a new house, your current home insurance policy might not be adequate coverage anymore.
While we seem to be gradually getting back to pre-COVID life, the effects the pandemic had on your home insurance policy may be here to stay.
The impact on new and existing homeowner policies
Amid the pandemic and the introduction of some of the lowest interest rates in history, many renters flocked to the suburbs to become first-time home buyers. Conversely, many homeowners found themselves suddenly unemployed and unable to afford their mortgage and homeowners insurance payments. Because of this, many lenders and insurance companies were offering payment suspensions and extensions to existing policyholders. For new buyers, insurance companies are offering additional coverages up front, such as a home business endorsement or increased limits.
How COVID-19 affects your home insurance policy
COVID-19 hasn’t had a direct impact on property itself as far as home insurance is concerned, but the way in which we use our homes has been impacted. The reality of spending more time at home and working out of your home presents new liabilities that can lead to the need for a home insurance endorsement.
One example is if you made upgrades to your home, added a pet to the family, or installed a pool in the backyard. These instances may not be included under your standard personal liability coverage. To be sure you have sufficient coverage, contact your local agent to review your policy and let them know of any new additions to your property.
Did you start working more out of your home or start a new business? If you answered yes to either of these, you should double-check your insurance policy. Standard homeowner insurance only covers business property to a certain, limited amount. If you have all your business equipment and inventory at home, you won’t be covered in the event of loss or damage. To make sure you’re protected from such perils, you should consider a home business endorsement or higher coverage limits.
Here are a few additional instances to consider:
- If you had extended family members move in with you, even temporarily.
- If you have a property you were unable to rent out.
- If you completed a home DIY project (remodeling a bathroom, finishing a basement, etc.)
- If you’re having groceries delivered to your home more frequently, there is an increased risk that delivery drivers could trip and fall and file a claim against you.
How do I know if I’m properly covered?
Not sure if you have enough coverage? At Anderson, Bagley & Mayo we’re here to help. We’ll walk you through your current policy and offer a few options for additional coverage should you need it. If you’re having trouble with payments, we’ll also help you figure out if there are areas where you can adjust your coverage and save a little each month.
There is no place like your home, so let us protect it. Contact your local Anderson, Bagley & Mayo agent today.